We Distinguish Between the Long-Run Aggregate Supply Curve and the Short-Run

question 88

Multiple Choice

We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve.In the long run

• A)technology is fixed but not in the short run.
• B)the price level is constant but in the short run it fluctuates.
• C)the aggregate supply curve is horizontal while in the short run it is upward sloping.
• D)all adjustments to changes in the price level have been made,but in the short run all changes in the price level cannot be made.

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Definitions:

Book of Original Entry

The Book of Original Entry refers to the initial record where financial transactions are documented chronologically.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Account Balances

The amount of money in an account at a specific point in time, reflecting all transactions.

Credits

An accounting entry that either decreases assets or increases liabilities and equity on the company's balance sheet.